INDEPENDENT BANK CORP

Noninterest Expense The following table sets forth information regarding non-interest expense for the periods shown:

Table 14 - Noninterest Expense

The primary reasons for the variances in the noninterest expense categories shown in the preceding table include:

•The increase in salaries and employee benefits was primarily attributable to increases in general salaries, incentive programs, medical plan insurance, and seasonal increases in payroll taxes, partially offset by decreased commissions and equity compensation.

•Occupancy and equipment expenses increased for the three months ended March 31, 2024, driven primarily by one-time lease exit costs associated with acquired leased locations as well as increased depreciation expense, partially offset by decreased utilities costs compared to the first quarter of 2023.

•Software and subscriptions increased primarily due to the Company's continued investment in its technology infrastructure.

•FDIC assessment increased compared to the same prior year period primarily due to an increase in the estimated FDIC special assessment recognized by the Company.

•Debit card expense increased due to higher processing fees driven by increased volume.

•Consulting expense decreased for the three months ended March 31, 2024 due primarily to the timing of strategic initiatives.

•Other noninterest expense decreased for the three months ended March 31, 2024, as compared to the same prior year period, primarily due to decreases in legal costs and examination and audit fees, partially offset by increases in card issuance costs and customer fraud reimbursements.

Income Taxes The tax effect of all income and expense transactions is recognized by the Company in each year’s consolidated statements of income, regardless of the year in which the transactions are reported for income tax purposes. The following table sets forth information regarding the Company’s tax provision and applicable tax rates for the periods indicated: